The astonishing increase of value of the Bitcoin vs. the US Dollar at the end of 2020 makes appear some discussions, reliefs and regrets about the past few years and the missed opportunities. Numerous threads on the social networks are about TO HODL or not TO HODL.
The purpose of this article is to propose a view on a very basic strategy of investment in a volatile asset: the dollar-cost averaging (DCA), i.e. invest the same amount of dollars in bitcoin on a periodic basis regardless its price.
The method
invest the same amount of dollars in bitcoin on a weekly basis
at the close (fictive) of the second working day, Tuesday (arbitrary choice)
start at the first week of the year
end at the last week of the year
amount : 50 dollars, as 10 dollars for each working day
compare with the amount put in a bank account instead (0% interest)
DCA in terms of US Dollars
crypto: value of the investment in the asset (bitcoin) in US Dollars
savings: value of the cash at 0% of interest in US dollars
DCA in terms of Bitcoins
crypto: number of accumulated bitcoins
savings: value of the cash let in a banking account in terms of bitcoins